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Instructors:  Professor Gikas Hardouvelis and Associate Professor Emmanuel Tsiritakis 
Course:  Money and Banking

 


The course “Money and Banking” provides an introduction to contemporary financial markets and monetary policy.  It is designed for sophomore students and ties together material from introductory Macroeconomics, Microeconomics and Financial Management.  It puts special emphasis on the financial system, the importance of financial markets and banking institutions, the behavior of asset prices, the special role of money in the financial system, and the key behavior of the central bank in influencing the stability of the financial system and the evolution of interest rates, inflation and output of the national economies.  

 

Weekly Program

1st Week

   1. Macroeconomic framework and the special role of money
   2. Financial markets, instruments and institutions
   3. The meaning of Money

2nd Week

   1. The intertemporal value of money and  the yield curve  
   2. Risk and expect to return

3rd Week

   1. The bond and other capital markets
   2. What drives interest rates to equilibrium?
   3. Changes in equilibrium interest rates

4th Week


   1. Interest rate risk premia
   2. The Term Structure of Interest Rates
   3. Theories explaining the Term Structure

5th Week

   1. Rational expectations and  the Efficient Markets Hypothesis
   2. Derivatives

6th Week


   1. The rationale of the existing Financial Architecture
   2. Asymmetric information and trading frictions
   3. Management of Financial Institutions
   4. The Regulatory Environment

7th Week


   1. Foreign Exchange Markets
   2. Interpreting the movement of Exchange Rates

8th Week

   1. Money Creation and the Banking System
   2. Monetary Base
   3. The money supply

9th Week

   1. The Greek Financial System in the EMU framework
   2. Description of ESCB
   3. ECB

10th Week

   1. Supply and Demand for Money
   2. Keynesian Theory
   3. The Quantity Theory of Money

11th Week

   1. The  IS - LM Model
   2. Factors behind the movement of the IS and LM curves
   3. Fiscal and Monetary policy in the IS - LM model

12th Wee
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   1. Monetary Policy in practice: Instruments and procedures
   2. The goals of Monetary Policy
   3. Operational Efficiency of Monetary Policy

13th Week

   1. Monetary Policy in the Euro area
   2. Macroeconomic Developments in Greece and the Euro area
   3. Monetary and credit  Developments